Pan Global Resources (PGZ) - European Copper Developer with Cash

Pan Global Resources Inc. is a junior exploration and development company focused on its assets located in Southern Spain. The Águilas project of the company is located 300 km south of the city of Madrid and has a land position of approximately 16,333 hectares. The project is accessible year-round and hosts copper, silver, lead as well as gold and silver.

The Escacena project of the company is located approximately 40 km northeast of Seville, Spain. The area is known for hosting one of the world’s largest volcanic massive-sulphide mineralisation zones. The project holds a land position of 5,458 hectares and hosts the La Romana copper-tin discovery and various other targets. Pan Global Resources Inc. sits with a cash position of CAD$ 11 million and plans to allocate approximately 80% of the capital towards further exploration initiatives at the Escacena project.

The company announced in October 2022 that it had commenced with exploration drilling at the Zarcita and Bravo Norte VMS copper targets of the Escacena project. The exploration drilling marks the first time the company has explored these targets. The Zarcita target is a 2.5 km long copper target, which shows various geophysical anomalies indicative of copper mineralisation, with the Bravo Norte target hosting various gravity and IP anomalies which are indicative of mineralisation. The company also announced that it had added a third drill rig to its exploration initiatives.

Pan Global Resources Inc. announced at the start of November 2022 that it had joined the United Nations; Global Compact further showing the company’s commitment to responsible development and environmental, social and governance (ESG) principles.

Management and Cash Position

The company is led by Tim Moody, who serves as the President and CEO of Pan Global Resources Inc. Moody has more than 30 years of experience in the mining industry, which includes mineral exploration, resource assessment, strategising and business development. Moody previously held the positions of Exploration Director (2005- 2010) and Vice President and Director of Business Development (2010-2015) for Rio Tinto.

Andrew Marshal is the Chief Financial Officer of the company. Marshall has more than a decade’s worth of experience as a Chartered Accountant, Chartered Financial Analyst and CFO in the mining industry. He has previously served as the CFO for First Mining Gold Corp. and was involved in building the company’s gold project portfolio in 2015.

Jim Royall is the Vice President of Exploration for Pan Global Resources Inc. Royall has more than 20 years of experience in early-stage and advanced exploration projects for various commodities in Asia, Europe, Africa and South America. He has held senior management positions in various junior mining companies and has lived in Spain for many years providing him with the opportunity to have extensive experience throughout the Iberian Peninsula where he has managed numerous exploration and development projects.

Jason Mercier is the Vice President of Investor Relations and Communications and has more than 20 years of experience providing investor and media relations management for junior mining companies as well as multi-billion dollar producing mining companies.

Max Pinsky rounds out the team as the Corporate Secretary for Pan Global Resources Inc. Pinsky is a practising lawyer with more than 20 years of experience in corporate and securities areas. He is also a member of the Law Society of British Columbia and is well-versed in assisting companies in all stages of planning and corporate development.

Pan Global Resources Inc. at the end of 2022 had a cash position of approximately CAD$ 11 million. Tim Moody explains that the allocation of funds in a difficult mineral sector coupled with a “tax-loss” season, results in a company taking a balanced approach regarding its funds. He explains that even though a conscientious approach is taken by Pan Global Resources Inc. the company is also focused on making a new mineral discovery.

“It is a balance. We are very conscious of what we’re spending and the market we’re in. That said, I’m in a rush to make another discovery. We’ve got some really good targets to drive that. The other thing, which I think gives us an advantage, is that the cost of exploration in Spain is so much better than what you would get in the High Andes or remote parts of Canada or somewhere like this. I think we’ve got a really big advantage in terms of making money stretch further.”

The Escacena project and working in Spain

The Escacena project of the company is located approximately 40 km northeast of Seville, Spain. The area is known for hosting one of the world’s largest volcanic massive-sulphide mineralisation zones. The project holds a land position of 5,458 hectares and has been actively explored by the company since 2019. The project hosts the La Romana copper-tin discovery and various other targets.

Moody notes that he regularly encounters possible investors who are unaware that Spain has a large mining industry. He notes that this has become less of a common occurrence in the last few years, with Spain’s prolific volcanic-hosted massive sulphide mineralisation becoming well-known.

“I think what I find is that people in Europe understand that Spain is a mining country, whereas I think 2 or 3 years ago when I was first talking to people in North America and elsewhere, you had to explain that actually Spain has a mining industry, and actually when it comes to things like copper or VMS deposits - yeah, from VMS deposits, this is the place to be.”

Moody also explains that the country has a mining history of more than 3,000 years which has led to various mining companies and as result service providers being operational in the country, which includes laboratories and equipment providers.

“We’re in a mining area. Spain has been mining continuously for 3,000 years. There are 7 big mines in the belt operating today. There are international laboratories. All the usual equipment providers know it’s an established mining country.”

Exploration and adding value

The company announced in October 2022 that it had commenced with exploration drilling at the Zarcita and Bravo Norte VMS copper targets of the Escacena project. The exploration drilling marks the first time the company has explored these targets. The Zarcita target is a 2.5 km long copper target, which shows various geophysical anomalies indicative of copper mineralisation. The Bravo Norte target hosts various gravity and IP anomalies which are indicative of mineralisation. The company also announced that it had added a third drill rig to its exploration initiatives, with assay results expected soon.

The company’s exploration initiatives have been ongoing since 2019, with Moody explaining that the company had completed 139 holes at the Escacena project by November 2022.

“We drilled our first holes in the Iberian Pyrite Belt on our first target, La Romana, at the end of 2019. We’ve now drilled 139 holes, first as a - I tell people, our first holes in our first target were discovery holes. Now we’ve drilled 139 holes, and we’ve hit nearly every one of those holes.”

The company’s exploration initiatives will be focused on new targets such as the Zarcita and Bravo Norte targets whilst also looking to expand the La Romana target, Moody explains:

“We’re now focusing on the new targets. La Romana is going to continue to grow. We’re waiting for some access to the west where we think it’s going to expand materially. All the indications are there. But it’s the new targets, the suite of really big things that have really got the team on the ground really excited, and I think that is what is really tracking investor interest at the moment.”

Pan Global Resources Inc. will also investigate the mineralisation at the west of its project where old Roman mine workings are located.

“There are some old Roman mine workings. We know the mineralisation is going to continue that way. There’s a big geophysics target out in that direction. It could really extend quite a bit. So, that’s 1 area. As soon as we’ve got that access, hopefully, we’ll see something happen before the end of the year. More likely, sometime early in the new year.”

The goal of the exploration initiatives of Pan Global Resources Inc. at the Escacena project is to enable more value creation. The company aims to also explore the deeper mineralisation of the La Romana target, as announced on the 15^th of November 2022. The company announced that it had initiated a drilling program at the Romana Deep target. The Romana Deep target hosts a promising large heliborne electromagnetic (HEM) anomaly that coincides with the down-dip projection of the near-surface La Romana copper/tin mineralisation.

Moody explains that the company is poised to also conduct cost studies on the Escacena project enabling it to have a better understanding of the project's economics.

“We’ve been focused really on the near-surface. That’s where we’ll get the best bang for our buck. The other area where we’re trying to add value for La Romana is to do the cost study, start to understand the economics, and what sort of cut-offs we can use. We’ve got some metallurgical test work underway, something that’s a bit more definitive than the early tests we did. Starting to see how we can drive the copper recoveries, and what sort of tin recovery we can get.”

ESG focus and future initiatives

Pan Global Resources Inc. announced at the start of November 2022 that it had joined the United Nations Global Compact further showing the company’s commitment to responsible development and environmental, social and governance (ESG) principles.

The company believes that copper is moving towards a period where it will see a dramatic and sustained increase in its value. The catalyst according to Moody is the global push towards electrification, with copper playing a crucial part in electric motors and various other electrical components.

“We’re going into a period where copper prices could really move. In fact, my thesis, and it’s not only my thesis, is that for the copper industry to react to this growing demand that seems to be emerging for electrification and the energy transition, but there also has to be a change in the copper price to incentivise further capital spend, further developments and so on.”

Moody explains that the mineralisation Pan Global Resources Inc. continues to intercept is ideal for a copper operation, with the majority of mineralisation located near-surface. As the global push towards electrification continues to grow, the company will focus on further expanding its resources and positioning itself to be ideally located for the impending copper market increase.

“We’ve got high grades near the surface in an area with excellent infrastructure. There are so many things at the moment that seem to be falling into place for us. The geometry looks great, the grade distribution looks very favourable with some of the best grades nearest to the surface. We’ve got some thickness as well.”

To find out more, go to the Pan Global Resources website